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# Question: Assume that you want to purchase 4 round lot shares of GP. The current share price of…

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Question:

Assume that you want to purchase 4 round lot shares of GP. The current share price of GP is \$56. Your initial margin is 65%. Maintenance margin is 27%. GP pays half yearly dividend of \$1 per share. For the borrowed amount you have to pay interest of 7% per annum. After 3 month you want to sell the shares for \$62.

Calculate total dividend amount for a quarter.

\$200 ? \$800

? \$400

? \$600

Calculate interest amount (approximate) for a quarter.

O \$27.489 \$523.6

? \$137.2

? \$261.8

Calculate the return on investment amount (approximate) for a quarter.

16.91%

O 18%

O 50.74%

? 31.41%

Calculate the return on investment amount (approximate) for a nine months.

16.91%

50%

O 94.23%

O 50.73%